Indosuez Europe Rendement is a diversified euro fund which chose to focus on "European yield stocks" three years ago. Managed by Gestion Privée Indosuez, its exposure to equities ranges from 50% to 90%. The fund used almost all its leeway between early 2009 and August 2010, when its weighting to equities rose from 55% to 80%. Today, Gaël de la Morlais, manager of the fund for the past three years, has moved back to a strategy of “with exposure to equities just short of 60%”. The fund ideally seeks to invest in companies with a mature, resilient business model that generate strong cash flow, are not especially cyclical, are ideally leaders in a protected market and have reasonable, well-controlled debt levels... Added to these criteria are dividend stability or growth and dividend cash coverage. But as Gaël de la Morlais points out: “Few companies combine all these qualities so sometimes we have to compromise on one or other of them whilst maintaining an overall balance in the portfolio between yield, value and sensitivity to the economic cycle”. Whilst the proportion of financial stocks has decreased sharply, the fund currently favours reinsurers such as Scor, which took an early decision to divest out of European sovereign debt and long bonds. Other sectors in favour at the moment are Telecoms (Deutsche Telekom) and Energy (Total, E.On, Eni, Repsol).Lastly, the liquidity crisis in late 2008 also provided the opportunity to diversify the portfolio and invest in the corporate bond market, first short-term (under one year) and then medium-term (under three years). * from 2008, 1st July to 2011, 30th June